Morning all! It's Paul here with the SCVR for Tuesday.
Please see above for today's announcements which I'll be covering.
Estimated timings - I got a bit bogged down in Sosandar, as usual! But I've got nothing else on today, so will carry on writing this afternoon until all sections are finished. Finish time: 4pm. Today's report is now finished.
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Gold
I see the price of gold is rebounding strongly, after the recent plunge. It's something I've started following (and went long, via a spread bet, on the recent dip). Some of the reader comments here have been interesting in recent weeks, and persuaded me to look at this area - whilst acknowledging I have very little knowledge of the resources sector, but do understand the basics, after many lunches with sector experts over the last 20 years.
With so much money-printing going on (QE), major currencies can't really devalue against each other, because they're all at it! Therefore, as readers have pointed out here in the comments, it's logical for the increased money supply to cause currencies to devalue against gold. That makes sense to me, in simple terms, hence why I bought gold on the dip.
Interestingly, yesterday it emerged that Warren Buffett Berkshire Hathaway has unexpectedly bought shares in a gold mine;
Buffett deserves credit for shifting his stance to the new reality as a result of the irrational policies of massive borrowing and money printing by U.S. leaders. Berkshire Hathaway BRK.A, -1.90% bought about 21 million shares of gold miner Barrick Gold GOLD, +11.63%, spending about $563 million. That’s according to a filing released Aug. 14. Buffett’s conversion to gold is a signal for other stock market investors.
[Source: CNBC]
The article goes on to say that Buffett has historically been negative about gold. So this sounds a significant change in stance. Hence I'll stay long (lucky timing!), as this move by Buffett could draw in other investors into this area, perhaps?
EDIT: do have a look at the reader comments below too, on this topic. Some interesting perspectives! This may not have been Buffett's decision, as it's a relatively small position, and he's handing over control to younger managers these days. Nevertheless, it's all about perception, hence I think Buffett's famous investment vehicle going in this direction is bound to influence other investors. End of edit.
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